Technology
RADIANT LOGISTICS ANNOUNCES RESULTS FOR THE THIRD FISCAL QUARTER ENDED MARCH 31, 2025
Published
1 year agoon
By
Continues to deliver solid financial results in face of continued market headwinds;
Further progress in green-field and strategic operating partner acquisitions;
Well positioned to navigate impacts of recently announced tariffs
with low leverage and diversified service offering
RENTON, Wash., May 12, 2025 /PRNewswire/ — Radiant Logistics, Inc. (NYSE American: RLGT), a technology-enabled global transportation and value-added logistics services company, today reported financial results for the three and nine months ended March 31, 2025.
Financial Highlights – Three Months Ended March 31, 2025
Revenues of $214.0 million for the third fiscal quarter ended March 31, 2025, up $29.4 million or 15.9%, compared to revenues of $184.6 million for the comparable prior year period.Gross profit of $54.5 million for the third fiscal quarter ended March 31, 2025, up $5.7 million or 11.7%, compared to gross profit of $48.8 million for the comparable prior year period.Adjusted gross profit, a non-GAAP financial measure, of $58.2 million for the third fiscal quarter ended March 31, 2025, up $5.1 million or 9.6%, compared to adjusted gross profit of $53.1 million for the comparable prior year period.Net income attributable to Radiant Logistics, Inc. of $2.5 million, or $0.05 per basic and fully diluted share for the third fiscal quarter ended March 31, 2025, up $3.2 million or 457.1%, compared to net loss attributable to Radiant Logistics, Inc. of $0.7 million, or $0.02 loss per basic and fully diluted share for the comparable prior year period.Adjusted net income, a non-GAAP financial measure, of $6.9 million, or $0.15 per basic and $0.14 per fully diluted share for the third fiscal quarter ended March 31, 2025, up $3.3 million or 91.7%, compared to adjusted net income of $3.6 million, or $0.08 per basic and fully diluted share for the comparable prior year period.Adjusted EBITDA, a non-GAAP financial measure, of $9.4 million for the third fiscal quarter ended March 31, 2025, up $4.2 million or 80.8%, compared to adjusted EBITDA of $5.2 million for the comparable prior year period.Adjusted EBITDA margin (adjusted EBITDA expressed as a percentage of adjusted gross profit), a non-GAAP financial measure, up to 16.2% or 640 basis points, for the third fiscal quarter ended March 31, 2025, compared to adjusted EBITDA margin of 9.8% for the comparable prior year period.
Acquisition Update
Effective March 1, 2025, the Company acquired Transcon Shipping Co., Inc. (“Transcon”), a California-based, privately held company that combines decades of excellence in ocean freight forwarding services with a complementary portfolio of air freight and other transportation services from strategic gateway locations in Los Angeles, New York and Chicago.
Effective April 1, 2025, the Company acquired USA Logistics Services, Inc. and USA Carrier Services, LLC (collectively, “USA Logistics”), both Philadelphia, Pennsylvania based, privately held companies that have operated as part of the Company’s Service By Air brand since 2014.
Effective May 1, 2025, the Company acquired Universal Logistics, Inc., a Texas based, privately held company with operations in Houston that has operated under the Company’s Airgroup brand since 2001.
The Company structured each of these transactions similar to its previous transactions, with a portion of the expected purchase price payable in subsequent periods based on the achievement of certain integration milestones and the future performance of the acquired operations.
CEO Bohn Crain Comments on Results
“With the benefit of our diverse service offering, we continue to deliver solid financial results and generated $9.4 million in adjusted EBITDA for our third fiscal quarter ended March 31, 2025, which is up $4.2 million and just over 80% relative to the comparable prior year period,” said Bohn Crain, Founder and CEO of Radiant Logistics. “The comparable year-over-year improvement in adjusted EBITDA was driven through a combination of improvements in our base business operations along with contributions from our recent acquisitions. For the quarter ended March 31, our legacy U.S. operations generated $1.5 million in incremental adjusted EBITDA while our legacy Canadian operations generated $0.5 million in incremental adjusted EBITDA. An additional $2.0 million in adjusted EBITDA for the quarter ended March is driven principally by our green-field acquisitions of Seattle-based Cascade Transportation (June 2024), Houston-based Foundation Logistics and Services (September 2024), St. Louis-based TCB Transportation (December 2024), and Los Angeles-based Transcon Shipping (March 2025) along with the conversion of our strategic operating partner, Miami-based Select Logistics (February 2024).
Notwithstanding these strong results for the quarter ended March 31, 2025, we expect some near-term volatility in our results tied to the ebb and flow of the ongoing U.S. negotiations around trade and tariffs and estimate that approximately 25-30% of gross margins for the March quarter would have been impacted by the recently announced tariffs. With that said, we also expect that any near-term slowdown will likely result in a corresponding bullwhip effect, with a surge in global trade as these tariff disputes are brought to rest and are encouraged by the de-escalation of U.S – China trade tensions that occurred over the weekend. In any event, we intend to remain nimble in response to any tariff announcements by the U.S. administration and continue to support our customers in navigating these quickly evolving markets and executing thoughtful supply chain strategies for competitive advantage.”
Mr. Crain continued, “As previously discussed, we believe we are well positioned with a durable business model, diverse service offering and strong balance sheet to navigate through a slower freight market. We continue to enjoy a strong balance sheet with approximately $19.0 million of cash on hand as of March 31, 2025, and only $15.0 million drawn on our $200.0 million credit facility. At the same time, we remain focused on the longer term, staying true to our strategy to deliver profitable growth through a combination of organic and acquisition initiatives, while thoughtfully re-levering our balance sheet through a combination of strategic operating partner conversions, synergistic tuck-in acquisitions, and stock buy-backs. Through this approach we believe, over time, we will continue to deliver meaningful value for our shareholders, operating partners, and the end customers that we serve. We made good progress in this regard over this last quarter with the acquisition of California-based Transcon Shipping, the conversion of our Pennsylvania-based strategic operating partner (USA Logistics and USA Carriers) which is being combined with our existing Radiant operation in Philadelphia and the conversion of our Texas-based strategic operating partner (Universal Logistics) which is being combined with our existing Radiant operation in Houston. We believe these three transactions are representative of our broader pipeline of opportunities which includes both green-field acquisitions (i.e. companies not currently part of our network) as well as acquisition opportunities inherent in our agent-based network where we can support our current operating partners in their exit strategies.”
Three Months Ended March 31, 2025 – Financial Results
For the three months ended March 31, 2025, the Company reported net income attributable to Radiant Logistics, Inc. of $2.5 million on $214.0 million of revenues, or $0.05 per basic and fully diluted share. For the three months ended March 31, 2024, the Company reported net loss attributable to Radiant Logistics, Inc. of $0.7 million million on $184.6 million of revenues, or $0.02 loss per basic and fully diluted share.
For the three months ended March 31, 2025, the Company reported adjusted net income, a non-GAAP financial measure, of $6.9 million, or $0.15 per basic and $0.14 per fully diluted share. For the three months ended March 31, 2024, the Company reported adjusted net income of $3.6 million, or $0.08 per basic and fully diluted share.
For the three months ended March 31, 2025, the Company reported adjusted EBITDA, a non-GAAP financial measure, of $9.4 million, compared to $5.2 million for the comparable prior year period.
Nine Months Ended March 31, 2025 – Financial Results
For the nine months ended March 31, 2025, the Company reported net income attributable to Radiant Logistics, Inc. of $12.4 million on $682.1 million of revenues, or $0.26 per basic and $0.25 per fully diluted share. For the nine months ended March 31, 2024, the Company reported net income attributable to Radiant Logistics, Inc. of $2.9 million on $596.4 million of revenues, or $0.06 per basic and fully diluted share.
For the nine months ended March 31, 2025, the Company reported adjusted net income, a non-GAAP financial measure, of $25.5 million, or $0.54 per basic and $0.52 per fully diluted share. For the nine months ended March 31, 2024, the Company reported adjusted net income of $15.6 million, or $0.33 per basic and $0.32 per fully diluted share.
For the nine months ended March 31, 2025, the Company reported adjusted EBITDA, a non-GAAP financial measure, of $30.9 million, compared to $22.1 million for the comparable prior year period.
Earnings Call and Webcast Access Information
Radiant Logistics, Inc. will host a conference call on Monday, May 12, 2025 at 4:30 PM Eastern to discuss the contents of this release. The conference call is open to all interested parties, including individual investors and press. Bohn Crain, Founder and CEO will host the call.
Conference Call Details
DATE/TIME:
Monday, May 12, 2025 at 4:30 PM Eastern
DIAL-IN
US (877) 545-0320; Intl. (973) 528-0002 (Participant Access Code: 833610)
REPLAY
May 13, 2025 at 9:30 AM Eastern to May 26, 2025 at 4:30 PM Eastern, US (877) 481-4010;
Intl. (919) 882-2331 (Replay ID number: 52436)
Webcast Details
This call is also being webcast and may be accessed via Radiant’s web site at www.radiantdelivers.com or at https://www.webcaster4.com/Webcast/Page/2191/52436
About Radiant Logistics (NYSE American: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) operates as a third-party logistics company, providing technology-enabled global transportation and value-added logistics solutions primarily to customers in the United States and Canada. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding and freight brokerage services to a diversified account base including manufacturers, distributors and retailers, which it supports from an extensive network of company and agent-owned offices throughout North America and other key markets around the world. Radiant’s value-added logistics services include warehouse and distribution, customs brokerage, order fulfillment, inventory management and technology services.
This report contains “forward-looking statements” within the meaning set forth in United States securities laws and regulations – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “estimates,” “expect,” “future,” “intend,” “may,” “plan,” “see,” “seek,” “strategy,” or “will” or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. We have developed our forward-looking statements based on management’s beliefs and assumptions, which in turn rely upon information available to them at the time such statements were made. Such forward-looking statements reflect our current perspectives on our business, future performance, existing trends and information as of the date of this report. These include, but are not limited to, our beliefs about future revenue and expense levels, growth rates, prospects related to our strategic initiatives and business strategies, along with express or implied assumptions about, among other things: our continued relationships with our strategic operating partners; the performance of our historic business, as well as the businesses we have recently acquired, at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of such acquisitions; our ability to successfully integrate our recently acquired businesses; our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; transportation costs remaining in-line with recent levels and expected trends; our ability to mitigate, to the best extent possible, our dependence on current management and certain larger strategic operating partners; our compliance with financial and other covenants under our indebtedness; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; our ability to continue to respond to macroeconomic factors that have recently had a negative effect on worldwide freight markets; the impact of any health pandemic or environmental event on our operations and financial results; continued disruptions in the global supply chain; higher inflationary pressures particularly surrounding the costs of fuel, labor, and other components of our operations; potential adverse legal, reputational and financial effects on the Company resulting from the cybersecurity incident that we reported in March 2024 or future cyber incidents and the effectiveness of the Company’s business continuity plans in response to cyber incidents; the commercial, reputational and regulatory risks to our business that may arise as a consequence of our inability to remediate during fiscal year 2024 a material weakness in our internal controls over financial reporting, and the further risks that may arise should we be unable to remediate that material weakness during fiscal year 2025; and such other factors that may be identified from time to time in our U.S Securities and Exchange Commission (“SEC”) filings and other public announcements including those set forth under the caption “Risk Factors” in Part 1 Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. We disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
RADIANT LOGISTICS, INC.
Condensed Consolidated Balance Sheets
March 31,
June 30,
(In thousands, except share and per share data)
2025
2024
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
19,041
$
24,874
Accounts receivable, net of allowance of $2,029 and $2,103, respectively
134,730
118,016
Contract assets
6,596
7,615
Income tax receivable
759
3,133
Prepaid expenses and other current assets
9,117
10,567
Total current assets
170,243
164,205
Property, technology, and equipment, net
23,559
25,558
Goodwill
115,385
93,043
Intangible assets, net
47,785
34,943
Operating lease right-of-use assets
55,242
49,850
Deposits and other assets
2,288
3,586
Total other long-term assets
220,700
181,422
Total assets
$
414,502
$
371,185
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
74,051
$
73,558
Operating partner commissions payable
10,603
13,291
Accrued expenses
9,876
8,948
Current portion of operating lease liabilities
12,484
11,629
Current portion of finance lease liabilities
566
643
Current portion of contingent consideration
6,193
455
Other current liabilities
603
1,927
Total current liabilities
114,376
110,451
Notes payable
15,000
—
Operating lease liabilities, net of current portion
49,855
45,026
Finance lease liabilities, net of current portion
1,036
677
Contingent consideration, net of current portion
13,620
4,710
Deferred tax liabilities
2,088
812
Other long-term liabilities
210
—
Total long-term liabilities
81,809
51,225
Total liabilities
196,185
161,676
Equity:
Common stock, $0.001 par value, 100,000,000 shares authorized; 52,323,827 and
51,844,249 shares issued, and 47,159,161 and 46,808,943 shares outstanding,
respectively
34
33
Additional paid-in capital
110,224
110,763
Treasury stock, at cost, 5,164,666 and 5,035,306 shares, respectively
(31,874)
(31,166)
Retained earnings
145,662
133,278
Accumulated other comprehensive loss
(5,808)
(3,546)
Total Radiant Logistics, Inc. stockholders’ equity
218,238
209,362
Non-controlling interest
79
147
Total equity
218,317
209,509
Total liabilities and equity
$
414,502
$
371,185
RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
Three Months Ended March 31,
Nine Months Ended March 31,
(In thousands, except share and per share data)
2025
2024
2025
2024
Revenues
$
214,007
$
184,559
$
682,116
$
596,438
Operating expenses:
Cost of transportation and other services
155,832
131,438
503,082
420,495
Operating partner commissions
19,256
20,077
57,348
69,678
Personnel costs
20,450
19,416
59,627
58,803
Selling, general and administrative expenses
9,739
9,994
30,894
29,987
Depreciation and amortization
4,936
4,540
14,779
13,430
Lease termination costs
210
—
1,376
76
Change in fair value of contingent consideration
250
—
(850)
(450)
Total operating expenses
210,673
185,465
666,256
592,019
Income (loss) from operations
3,334
(906)
15,860
4,419
Other income (expense):
Interest income
292
623
1,124
1,829
Interest expense
(303)
(250)
(851)
(843)
Foreign currency transaction gain
96
105
215
121
Change in fair value of interest rate swap contracts
(291)
(170)
(1,032)
(903)
Other
17
32
1,070
195
Total other income (expense)
(189)
340
526
399
Income (loss) before income taxes
3,145
(566)
16,386
4,818
Income tax expense
(573)
(49)
(3,881)
(1,467)
Net income (loss)
2,572
(615)
12,505
3,351
Less: net income attributable to non-controlling interest
(31)
(88)
(121)
(447)
Net income (loss) attributable to Radiant Logistics, Inc.
$
2,541
$
(703)
$
12,384
$
2,904
Other comprehensive income (loss):
Foreign currency translation gain (loss)
9
(1,151)
(2,262)
(882)
Comprehensive income (loss)
$
2,581
$
(1,766)
$
10,243
$
2,469
Income (loss) per share:
Basic
$
0.05
$
(0.02)
$
0.26
$
0.06
Diluted
$
0.05
$
(0.02)
$
0.25
$
0.06
Weighted average common shares outstanding:
Basic
47,073,339
46,963,845
46,911,231
47,084,645
Diluted
48,666,557
46,963,845
48,743,999
48,899,138
Reconciliation of Non-GAAP Measures
RADIANT LOGISTICS, INC.
Reconciliation of Gross Profit to Adjusted Gross Profit, Net Income Attributable to Radiant Logistics, Inc.
to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
(unaudited)
As used in this report adjusted gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles (“GAAP”). Adjusted gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are presented herein because they are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant’s business. For adjusted net income, management uses a 24.5% tax rate to calculate the provision for income taxes to normalize Radiant’s tax rate to that of its competitors and to compare Radiant’s reporting periods with different effective tax rates. In addition, in arriving at adjusted net income, the Company adjusts for certain non-cash charges and significant items that are not part of regular operating activities. These adjustments include income taxes, depreciation and amortization, net interest expense, share-based compensation, change in fair value of contingent consideration, transition costs, lease termination costs, acquisition related costs, cybersecurity related costs, litigation costs, change in fair value of interest rate swap contracts, and gain on foreign currency transaction.
We commonly refer to the term “adjusted gross profit” when commenting about our Company and the results of operations. Adjusted gross profit is a non-GAAP measure calculated as revenues less directly related operations and expenses attributed to the Company’s services. Adjusted gross profit is calculated as GAAP gross profit exclusive of depreciation and amortization, which are reported separately. We believe adjusted gross profit is a better measurement than are total revenues when analyzing and discussing the effectiveness of our business and is used as a portion of a key metric the Company uses to discuss its progress.
EBITDA is a non-GAAP measure of income and does not include the effects of interest, taxes, and the “non-cash” effects of depreciation and amortization on long-term assets. Companies have some discretion as to which elements of depreciation and amortization are excluded in the EBITDA calculation. We exclude all depreciation charges related to property, technology, and equipment and all amortization charges (including amortization of leasehold improvements). We then further adjust EBITDA to exclude share-based compensation, changes in fair value of contingent consideration, expenses specifically attributable to acquisitions, cybersecurity incident related costs, changes in fair value of interest rate swap contracts, lease termination costs, foreign currency transaction gains and losses, litigation expenses unrelated to our core operations, and other non-cash charges. While management considers EBITDA and adjusted EBITDA useful in analyzing our results, it is not intended to replace any presentation included in our condensed consolidated financial statements.
We believe that these non-GAAP financial measures, as presented, represent a useful method of assessing the performance of our operating activities, as they reflect our earnings trends without the impact of certain non-cash charges and other non-recurring charges. These non-GAAP financial measures are intended to supplement the GAAP financial information by providing additional insight regarding results of operations to allow a comparison to other companies, many of whom use similar non-GAAP financial measures to supplement their GAAP results. However, these non-GAAP financial measures will not be defined in the same manner by all companies and may not be comparable to other companies. Adjusted gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin should not be considered in isolation or as a substitute for any of the condensed consolidated statements of comprehensive income prepared in accordance with GAAP, or as an indication of Radiant’s operating performance or liquidity.
(In thousands)
Three Months Ended March 31,
Nine Months Ended March 31,
Reconciliation of adjusted gross profit to GAAP gross profit
2025
2024
2025
2024
Revenues
$
214,007
$
184,559
$
682,116
$
596,438
Cost of transportation and other services (exclusive of
depreciation and amortization, shown separately below)
(155,832)
(131,438)
(503,082)
(420,495)
Depreciation and amortization
(3,632)
(4,370)
(10,827)
(10,908)
GAAP gross profit
$
54,543
$
48,751
$
168,207
$
165,035
Depreciation and amortization
3,632
4,370
10,827
10,908
Adjusted gross profit
$
58,175
$
53,121
$
179,034
$
175,943
GAAP gross profit percentage
25.5
%
26.4
%
24.7
%
27.7
%
Adjusted gross profit percentage
27.2
%
28.8
%
26.2
%
29.5
%
(In thousands)
Three Months Ended March 31,
Nine Months Ended March 31,
Reconciliation of GAAP net income to adjusted EBITDA
2025
2024
2025
2024
Net income (loss) attributable to Radiant Logistics, Inc.
$
2,541
$
(703)
$
12,384
$
2,904
Income tax expense
573
49
3,881
1,467
Depreciation and amortization (1)
4,936
4,654
14,893
13,773
Net interest expense (income)
11
(373)
(273)
(986)
EBITDA
8,061
3,627
30,885
17,158
Share-based compensation
470
951
(1,180)
2,526
Change in fair value of contingent consideration
250
—
(850)
(450)
Acquisition related costs
179
129
364
450
Cybersecurity event
—
266
—
266
Litigation costs
33
170
454
1,275
Gain on litigation settlement
—
—
(1,000)
—
Lease termination costs
210
—
1,376
76
Change in fair value of interest rate swap contracts
291
170
1,032
903
Foreign currency transaction gain
(96)
(105)
(215)
(121)
Adjusted EBITDA
$
9,398
$
5,208
$
30,866
$
22,083
Adjusted EBITDA margin (adjusted EBITDA as a % of adjusted gross profit)
16.2
%
9.8
%
17.2
%
12.6
%
(1) Depreciation and amortization for the purposes of calculating adjusted EBITDA, a non-GAAP financial measure, includes depreciation expenses recognized
on certain computer software as a service.
(In thousands, except share and per share data)
Three Months Ended March 31,
Nine Months Ended March 31,
Reconciliation of GAAP net income to adjusted net income
2025
2024
2025
2024
Net income (loss) attributable to Radiant Logistics, Inc.
$
2,541
$
(703)
$
12,384
$
2,904
Adjustments to net income:
Income tax expense
573
49
3,881
1,467
Depreciation and amortization
4,936
4,540
14,779
13,430
Change in fair value of contingent consideration
250
—
(850)
(450)
Acquisition related costs
179
129
364
450
Cybersecurity event
—
266
—
266
Litigation costs
33
170
454
1,275
Lease termination costs
210
—
1,376
76
Change in fair value of interest rate swap contracts
291
170
1,032
903
Amortization of debt issuance costs
100
129
300
384
Adjusted net income before income taxes
9,113
4,750
33,720
20,705
Provision for income taxes at 24.5%
(2,232)
(1,164)
(8,261)
(5,073)
Adjusted net income
$
6,881
$
3,586
$
25,459
$
15,632
Adjusted net income per common share:
Basic
$
0.15
$
0.08
$
0.54
$
0.33
Diluted
$
0.14
$
0.08
$
0.52
$
0.32
Weighted average common shares outstanding:
Basic
47,073,339
46,963,845
46,911,231
47,084,645
Diluted
48,666,557
46,963,845
48,743,999
48,899,138
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SOURCE Radiant Logistics, Inc.
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“We are changing how software gets built. Enterprise leaders have moved past experiments. They want AI that delivers outcomes boards can measure and risk they can manage. Andy, Jack, Julieta, and Joseph have the experience and know where transformation succeeds. They will challenge our thinking, raise our ambition, and help us navigate a period of intense — and exciting — change,” said Karthik Krishnamurthy, CEO, Ascendion.
Each advisor will map to a different part of the business, strengthening Ascendion’s alignment with leadership communities across the globe.
Julieta Ross, Ph.D., former Global CTO of Banco Santander, brings two decades of leading technology inside global banks, along with public-company board experience. She will work with Ascendion’s leadership on executive relationships, go-to-market strategy, and growth, and will help the company meet the governance, regulatory, and risk expectations that banking and financial services leaders place on AI. Andy Gamble, former Group CIO of Currys plc, has spent nearly three decades as a technology buyer and transformation leader across consumer electronics, industrial, and retail businesses. He will advise Ascendion’s work across Europe and the UK, with a focus on consumer goods, manufacturing, and retail, and will share what executive teams and Boards expect from a technology partner. Joseph Sirosh, Ph.D., former Microsoft CVP and CTO of AI, has spent his career building and scaling machine learning platforms in the high-tech industry. He will advise Ascendion’s engineering leadership on the evolution of AAVA and its broader platform strategy as AAVA becomes an orchestration and harness layer for enterprise AI. Jack Madrid, former President and CEO of IBPAP, spent five years leading the industry association behind one of the world’s largest technology and business-services ecosystems, centered in the Philippines. He brings robust experience working across industries, including banking, high-tech, and media, and will advise Ascendion on Asia-Pacific markets and on how AI is reshaping global delivery, skills, and workforce models.
Together, the advisors give Ascendion an outside perspective on the full spectrum of enterprise AI, from agentic platform strategy and product engineering to industry alignment and delivery. They will add capacity to Ascendion’s ongoing work on AI governance, helping ensure trusted impact from AI-native software engineering, and their practice-based insight will inform how Ascendion applies its Engineering to the Power of AI™ approach to commercial models, platform design, service execution, and workforce development.
About Ascendion
Ascendion is a global AI-native software engineering company delivering trusted business outcomes – capital unlock, innovation velocity, lower risk – to 250+ enterprise clients. The company delivers business outcomes at scale by combining expert engineers, AI agents, and AAVA, Ascendion’s agentic AI platform. Together, they design, engineer, and operate production-ready software that improves everyday work and life. Learn more at www.ascendion.com.
Engineering to the Power of AI™, Engineering to Elevate Life™, and AAVA™ are trademarks or service marks of Ascendion. AAVA™ is pending registration. Unauthorized use is strictly prohibited.
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NEW YORK, Oct. 27, 2026 /PRNewswire/ — AvePoint Inc. (NASD: AVPT) will replace LXP Industrial Trust (NYSE: LXP) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, November 2. Brookfield Asset Management Ltd. and Canada Pension Plan Investment Board are acquiring LXP Industrial Trust in a deal expected to close soon, pending final closing conditions.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
Nov 2, 2026
S&P SmallCap 600
Addition
AvePoint
AVPT
Information Technology
Nov 2, 2026
S&P SmallCap 600
Deletion
LXP Industrial Trust
LXP
Real Estate
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S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/.
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SOURCE S&P Dow Jones Indices
Technology
Archera Surpasses $5.6 Billion in Cloud and AI Spend Under Management, Closes Series C Led by Pivot Investment Partners, and Expands Insurance-Backed Cloud Commitments
Published
2 hours agoon
October 27, 2026By
The round will help Archera expand its guaranteed cloud commitments, bringing insurance-backed financial protection to companies navigating unpredictable AI and cloud spending. The company has delivered more than $700 million in customer savings and now manages approximately $5.6 billion in annual cloud and AI spend.
BELLEVUE, Wash., Oct. 27, 2026 /PRNewswire/ — As artificial intelligence makes cloud spending harder to predict, companies face an increasingly expensive choice: commit to long-term cloud and AI contracts to unlock significant discounts or preserve flexibility and leave savings on the table. Archera has raised a $15 million Series C to expand its Guaranteed Commitments and change that equation.
The cloud economics company today announced it closed its Series C funding round, led by Pivot Investment Partners, with participation from existing investors including HighSage Ventures. The financing brings Archera’s total funding to $38.3 million. It will support the expansion of Archera’s Guaranteed Commitments and its suite of free cloud cost tools, including its FinOps Agent and MCP.
Insurance-backed financial protection is central to Archera’s next phase of growth. Archera purchased a policy on a surplus lines basis from Crum & Forster Specialty Insurance Company to back its guarantee. This model helps businesses pursue cloud commitment savings while managing the financial risk of usage changes.
The company has delivered more than $700 million in savings to over 2,200 organizations, including PubNub, Art.com, and Astronomer. The thesis behind Archera is simple: companies shouldn’t have to predict AI’s future to commit and save money on today’s infrastructure.
Why Cloud and AI Commitments Need to Change
Cloud providers reward customers who commit to spending over one- to three-year periods with substantial discounts and access to capacity. Historically, those commitments have helped businesses reduce infrastructure costs. But AI is changing the risk and economics of that decision.
A new model launch can multiply GPU spending in months. A more efficient model, a shift in architecture, or a move to a different service can reduce it just as quickly. Long-term commitments that once looked financially sound can become expensive liabilities.
Companies are left choosing between overcommitting and risking unused spend, or undercommitting and missing out on available discounts. Many choose the latter, sacrificing potential savings to preserve flexibility.
Archera believes that the trade-off is unnecessary. Its Guaranteed Commitments provide resource-level cloud and AI discounts with terms as short as 30 days. If usage declines and a covered commitment goes unused, Archera covers the cost under the terms of its guarantee.
The result is a different way to approach cloud purchasing. Businesses can pursue deeper discounts and unlock capacity otherwise gated behind a commitment, without bearing the entire financial consequence when actual usage diverges from forecasts.
Turning Cloud Optimization Into a Financial Product
Traditional cloud cost management tools provide visibility, recommendations, automation, and forecasting, but they can’t eliminate the financial risk of unused commitments. Archera combines its free FinOps platform and Agent with a financial guarantee that addresses inaccurate forecasts.
“Every tool in this market is trying to forecast your cloud usage a little better. We think that’s the wrong bet,” said Aran Khanna, co-founder and CEO of Archera. “Nobody can forecast AI demand, not the customer, not the cloud provider. So instead of predicting it, we guarantee it, and we have purchased an insurance policy to back that guarantee. If covered usage drops, we address the unused commitment cost under the terms of our guarantee. That’s a new way to purchase cloud, not another dashboard, and it’s why we’ve been able to return $700 million to our customers.”
The approach positions cloud commitments as a financial risk decision, helping finance and engineering leaders manage budgets while adapting to changing technology.
Built for CFOs, CTOs, and the Teams Managing AI Costs
The approach addresses a growing challenge across finance and engineering: how to control infrastructure costs without constraining the business.
For CFOs: Capture commitment-level discounts while reducing exposure to eligible unused spend under the guarantee.For CTOs and engineering leaders: Preserve flexibility to adopt new AI models, change architectures, and scale workloads without letting past commitments dictate future decisions.For FinOps teams: Increase commitment coverage with a financial backstop when usage changes, without more back-and-forth with engineering teams to get perfect forecasts.For cloud partners and resellers: Give customers a differentiated way to pursue cloud savings that can be reinvested in new cloud services while managing commitment risk.
Archera’s platform connects to AWS, Microsoft Azure, or Google Cloud billing data in read-only mode and analyzes actual usage. It then recommends and automates the purchasing of both native commitments and Archera Guaranteed Commitments.
Customers can evaluate their potential savings before making any purchasing decision. Commitments remain in the customer’s own cloud account, preserving end-to-end control over cloud purchasing strategy.
Archera earns when customers save through its guaranteed commitments, aligning its commercial model with the outcomes customers seek.
Customers Are Rethinking the Commitment Model
For organizations accustomed to treating cloud commitments as a single, high-stakes decision, Archera offers a more flexible approach.
“Working with Archera meant rethinking commitments as a spectrum rather than a single, high-stakes decision,” said James Hamilton, VP of Operations and Controller at PubNub. “This was a big mind shift for us. We needed to think about how our commitments could be broken up into a spectrum of purchases versus a single one-time buy.”
That flexibility is particularly valuable as companies adopt AI workloads, where technology choices and resource requirements can shift faster than traditional budgeting cycles.
Instead of making one large bet on future usage, businesses can take a more measured approach while still securing meaningful discounts.
A Series C to Expand Insurance-Backed Cloud Purchasing
Archera has been operating profitably at scale. It raised a Series C to support larger guarantees, expand its reach, serve more customers, and upgrade the insurance policies backing its guarantee to serve larger global clients.
The company plans to use the capital in three ways:
Accelerate go-to-market efforts.Expand its global partner network across North America, Europe, the Middle East, Japan, and Latin America.Serve more teams focused on AI-driven workloads.
“Archera has built a capital-efficient and differentiated business at the intersection of cloud infrastructure and risk management,” said Dinkar Jetley, co-founder and managing partner at Pivot Investment Partners. “The team pairs a deep understanding of the cloud ecosystem with a rigorous approach to underwriting, and the result is a compelling value proposition that a fast-growing roster of customers relies on as their cloud spend scales. We are privileged to have led this Series C round and look forward to working closely with Aran and the management team in the years ahead.”
Built by People Who Understand Cloud Infrastructure
Aran and Nikhil Khanna founded Archera in 2019. Aran previously planned capacity for Azure’s core compute and database services at Microsoft and was a founding member of AWS’s deep learning team leading launches, including SageMaker, DeepLens, and the Neuron SDK, behind Amazon’s Trainium and Inferentia AI chips.
His research on deep learning model efficiency has been cited more than 1,900 times, and he serves on the FinOps Foundation governing board.
As AI transforms infrastructure economics, Archera aims to make cloud savings more accessible without forcing businesses to assume unnecessary financial risk.
To explore potential savings, request a free assessment at Archera.ai.
Free savings assessment: https://app.archera.ai/savings-estimate?utm_source=forbes&utm_medium=referral&utm_campaign=series-c-2026
Name: Sarah
Email Address: shiara@archera.ai
Phone Number: +13018255007
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SOURCE Archera
Ascendion Expands AI Advisory Community with Four Global Business and Technology Leaders
AvePoint Set to Join S&P SmallCap 600
Archera Surpasses $5.6 Billion in Cloud and AI Spend Under Management, Closes Series C Led by Pivot Investment Partners, and Expands Insurance-Backed Cloud Commitments
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